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PETITIONER: SMT. INDERMANI JATIA
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX, U.P., LUCKNOW
DATE OF JUDGMENT: 03/10/1958
BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. AIYYAR, T.L. VENKATARAMA SARKAR, A.K.
CITATION: 1959 AIR 82 1959 SCR Supl. (1) 45 CITATOR INFO : R 1971 SC2396 (12)
ACT: Income-tax-Mercantile system of accounts-Accounts in India, showing credit entry of receipt of interest from Indian State-If such amount liable to tax-New point-Indian Income- tax Act, 1922 (XI Of 1922), s. 4 (1)(a).
HEADNOTE: The assessee, who was ordinarily resident in British India, carried on business at Khurja and Aligarh in India and at Chistian in the Indian State of Bahawalpur. He kept a central set of accounts of the business at Khurja, which were maintained on the mercantile system. Under the said system credit entries are made in respect of amounts due immediately they become legally due and even before they are actually received. In his account books the income received by the assessee from all sources was shown, and the interest account showed credit entries of amounts received as interest on capital invested in the shop at Chistian. The assessee conceded that as creditor he had the right to enforce the payment of, interest in British India and that liability of the Chistian shop had been extingu...